Bessent’s clarification of the “$2,000 dividend” changed how the market read the fiscal stimulus discussion. According to the input information, the plan was clarified as a tax-cut arrangement rather than a direct injection of liquidity into the market. At the same time, Logan’s hawkish comments reduced expectations for a December rate cut, putting pressure on the liquidity narrative that crypto bulls had been relying on.
Against this backdrop, Bitcoin and Ethereum both recorded sharp price declines, while market fear intensified. The pressure on confidence came from two connected developments: Federal Reserve hawkish rhetoric lowered rate-cut expectations, and the fiscal stimulus plan was no longer understood as a direct dividend-style liquidity boost. Together, these factors left bullish traders with fewer policy-related supports.
The artificial intelligence narrative is described as one of the market’s remaining pillars, but Nvidia’s earnings could still bring further volatility. For Bitcoin and Ethereum, short-term risk appetite is being shaped by monetary policy expectations, the clarified fiscal stimulus message, and trading sentiment linked to the AI theme.